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Council hears updated timeline for proposed revenue bond financing and next steps
Summary
Financial advisor Paul Phillips reviewed the timeline and process for proposed revenue bonds to fund improvement projects, including projected insurer and rating steps, a June 9 offering document, a June 17 bond ordinance (with emergency clause and three readings) and a July 22 closing for construction funds.
City financial advisors and bond counsel briefed the Jonesboro City Council on June 3 about the process and timetable for proposed revenue bond financing to fund capital improvement projects.
Paul Phillips of Cruz and Associates summarized the planned timeline: secure a commitment from a credit enhancer (he cited Assure Guarantee) to pursue an expected AA credit rating; prepare and distribute a final offering document around June 9; solicit investor feedback for roughly one week; and return to the council on June 17 with a bond ordinance containing final terms. Phillips said the sale would be conducted the morning of June 17 and that the council would be asked to approve all three readings of the bond ordinance plus an emergency clause that evening to lock in final terms. The advisors plan to close the transaction on July 22 and place the proceeds into a construction fund at that time.
"Once that's put in place and those numbers are finalized, we'll then place those numbers into the final bond ordinance," Phillips said, adding the team had already initiated rating and insurer discussions. He described the need to finalize terms on the day of sale because market volatility requires immediate action after investor orders are received.
Bond counsel Ryan Bowman and underwriter Michael McBride were present; Phillips and counsel said a packet for the June 17 meeting will include a draft bond order with blanked-in interest-rate fields to be filled after the sale. The council was advised that staff and counsel would present redlined changes and an overview of the sale when the bond ordinance returns for final consideration.
Council members asked no substantive questions during the replayed briefing; the mayor said the administration is emphasizing transparency for the revenue-bond process and described the projects as priorities for public safety and infrastructure. No vote on bond issuance occurred at the June 3 meeting; advisors requested the June 17 meeting for final council action.
